By Our Reporter
The share market has been declining for the past one year. With the appointment of Dr. Yuba Raj Khatiwada as Finance Ministry, the share market has been declining. An in one year, after Khatiwada led the ministry, the share market investors lost Rs. 237 billion.
The loss is based on total market capitalisation in the Nepal Stock Exchange (NEPSE).
The total market capitalisation in the NEPSE has reduced to Rs. 1377.15 billion in Mid-February 2019 from Rs. 1614.16 billion in mid-February 2018.
In one year, the benchmark capital market index NEPSE declined by 18 per cent (252 points) to close at 1128 points. The NEPSE was at 1380 points on Mid-February 2018.
Investors as well as the officials at Nepal Investors Forum (NIF) said that the last two and half years were very painful for the share market investors due to the continuous fall in the share prices.
According to them, the share market investors had lost around Rs. 900 billion in two and half years’ pushing majority of investors into problems. The investors, who had invested during the peak point, have lost the two-third of the share value so far, he added.
The investors investing by taking loan from the banks and financial institutions were hit the hardest due to increase in the interest rate.
The interest rate, which was in between 8.5 per cent to 9.5 per cent two years ago, has now increased by around 50 per cent to 12.5 to 15 per cent, he said.
Share market analysts said that the major reason behind the constant decline in the share market price was the increase in supply of stocks in the market.
A total of 552,242,730 units of new shares have been registered in the stock exchange in the last one year.
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